Toyota Prius compact MPV to be called Alpha, coming in March 2011

We’ve been hearing about a Toyota Prius MPV (multi-purpose vehicle) for ages now. Well, according to insiders, the compact Prius minivan is in the final stages of development and will be called the “Alpha.” The model will be the first hybrid in the Prius lineup to adopt lithium-ion batteries when it hits markets in March 2011.

The Toyota Prius Alpha MPV will be built on the current Prius sedan platform and will get a third row. The overall length of the Alpha will be extended by at least a foot and the wheelbase will be increased by under an inch.

The Prius Alpha will be a 7-seater and insiders say a 5-seater version is also in the works.

On a side note, Toyota is also working on a hybrid version of the Toyota RAV-4.